An Opportune Time to Buy Gold & SilverI, Bill Stack, the writer of this article, just purchased more precious metals. As a matter of full disclosure, I have just done what I am preparing to recommend you, my fellow investors, to do. A great question to ask a financial analyst or anyone with an opinion about what you should do with your money, is what are they doing with theirs? It is usually wise to steer clear of those advising you to purchase something that they themselves are not willing to buy. That’s how some of the big banks got a bad reputation during the financial crisis, for recommending to their client's investments they themselves didn’t want or believe in. We have been planning to purchase additional precious metals, and a few days ago, we did. With prices temporarily as low now as they were last week, it continues to be a great time to jump in. Opening an account is easy, and once it is open, additional purchases are even easier.
Why buy precious metals?Well, for many reasons. My family has been invested in precious metals for 4 generations, and we continue to value the protection and growth available for ourselves, and the generations to come. Some of the stocks previously held in our family have become worthless. Some of the income-producing real estate properties were taxed into oblivion, required constant upkeep, and were sold a couple generations ago. Bank accounts have produced little interest in the last 10 years, often losing more to inflation than they pay out in interest. But the metals have remained, protecting purchasing power, with privacy, and without ongoing taxation. 100 ounces of Gold when I was born cost $3,500. $3,500 today would not be a large inheritance, but that same 100 ounces of Gold is worth $125,000.00 today, in melt value alone. Some of the numismatic coins purchased by my Great-Grandfather are worth 4-times their melt value today.
Why purchase gold and silver now?Prices are currently discounted, in Dollar terms. Metals are not as expensive in our currency right now, which means we have a temporary purchasing advantage here in the USA. These currency pendulums sometimes swing in cycles, and it has currently swung in our direction. As this article demonstrates, Platinum is largely discounted right now and offers a great opportunity to diversify your metals beyond buying Gold and Silver. As I mentioned in the opening paragraph, we just took advantage of the dip in metals prices ourselves, and believe it to be a good opportunity for everyone. Why else? There are financial indicators signaling that Gold is likely near a bottom, and preparing to rise. While a 10-15% rise in the Dollar-price of Gold in a few months would not signal a time to sell, it would indicate that now is an opportune time to buy gold. Even investment houses that normally deal in securities are considering purchasing precious metals.
Consider the Alternatives to Buying GoldDue to disruptions in the technology sector (Facebook has become “Faceplant”, etc.), many believe that the warned market contagion may be upon us. We wrote earlier about what will happen to various investments when contagion is triggered. Against this backdrop, Gold and Silver tend to shine. Even with higher interest rates on banking products, they still do not compare to the growth potential of Gold and Silver at today’s prices. Earning higher rates on a currency that is falling in value is not a recipe for success. Despite the myriad of reasons we have already discussed or those we have discussed in more detail in previous articles, there is another reason to purchase metals now. You have heard the phrase, “purchase it while you can”. The day will come, possibly within the next couple of years, when Gold and Silver may be unavailable for the average American to purchase. When markets are disrupted, premiums on precious metals soar. Initially. As the disruption continues, the protection of precious metals can become unavailable to all except those who already own. Just within the last couple of years, we have seen periods where the premium on silver was $6-$8 per ounce. That was only a minor disruption, compared to what seems to be ahead. Pension incomes are at risk nationwide. Cities and states simply do not have the resources to pay the promised retirement pensions of current and future retirees. Many with government pensions have already been forced to take a reduction in income, with much more sure to follow. States and municipalities try to remedy the shortfalls by raising property taxes, which lowers the investment value of real estate, making it harder for owners to reposition those assets. By exchanging real estate for precious metals now, you can avoid some or all of that difficulty, if you live in a fiscally irresponsible state. Beyond the difficulties faced by individual communities, is the economic reality faced by the nation as a whole. The national debt has become unsustainable, and unpayable. Many nations are liquidating their reserves of US Government bonds, and purchasing Gold. They can see the writing on the wall, and so should we. The days of the US Dollar as the Reserve Currency of the world are numbered, with many already looking ahead to the next phase of world monetary policy. Whatever that policy happens to be, it will certainly include Gold as a chief component. While the history of paper fiat currency shows an ultimate devaluation to $0 over time, every time, the usefulness of Gold and Silver to protect value and purchasing power is unequaled among currencies.
Will the Price of Gold go Lower?While it is possible that Gold and Silver could go lower in price, they won’t go much lower. And they won’t be down for long. I believe the greater risk now is not purchasing at current prices, as the expected movement over the next few months is higher. Rest assured, I do believe what I am telling you. So much so, that we just bought more precious metals ourselves and considering investing more. Currently, shipping is free too, which is nice. Sign up for free alerts, so you don’t miss your opportune price point for your investment.
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